EXLSERVICE HOLDINGS INC (EXLS) Stock Fundamental Analysis
NASDAQ:EXLS - Nasdaq - US3020811044 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to EXLS. EXLS was compared to 82 industry peers in the IT Services industry. Both the health and profitability get an excellent rating, making EXLS a very profitable company, without any liquidiy or solvency issues. EXLS has a correct valuation and a medium growth rate. These ratings would make EXLS suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year EXLS was profitable.
In the past year EXLS had a positive cash flow from operations.
In the past 5 years EXLS has always been profitable.
EXLS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 12.89%, EXLS belongs to the best of the industry, outperforming 93.90% of the companies in the same industry.
Looking at the Return On Equity, with a value of 21.36%, EXLS belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 15.02%, EXLS belongs to the top of the industry, outperforming 85.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EXLS is significantly below the industry average of 22.63%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 21.36% | ||
| ROIC | 15.02% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
1.3 Margins
Looking at the Profit Margin, with a value of 11.36%, EXLS belongs to the top of the industry, outperforming 81.71% of the companies in the same industry.
In the last couple of years the Profit Margin of EXLS has grown nicely.
The Operating Margin of EXLS (14.74%) is better than 79.27% of its industry peers.
EXLS's Operating Margin has improved in the last couple of years.
The Gross Margin of EXLS (37.90%) is comparable to the rest of the industry.
EXLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.74% | ||
| PM (TTM) | 11.36% | ||
| GM | 37.9% |
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EXLS is still creating some value.
Compared to 1 year ago, EXLS has less shares outstanding
The number of shares outstanding for EXLS has been reduced compared to 5 years ago.
The debt/assets ratio for EXLS is higher compared to a year ago.
2.2 Solvency
EXLS has an Altman-Z score of 10.05. This indicates that EXLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EXLS (10.05) is better than 89.02% of its industry peers.
The Debt to FCF ratio of EXLS is 1.25, which is an excellent value as it means it would take EXLS, only 1.25 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of EXLS (1.25) is better than 73.17% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that EXLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, EXLS is in line with its industry, outperforming 56.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 10.05 |
ROIC/WACC1.58
WACC9.52%
2.3 Liquidity
EXLS has a Current Ratio of 3.41. This indicates that EXLS is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.41, EXLS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
A Quick Ratio of 3.41 indicates that EXLS has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.41, EXLS belongs to the top of the industry, outperforming 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.22% over the past year.
Measured over the past years, EXLS shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.63% on average per year.
Looking at the last year, EXLS shows a quite strong growth in Revenue. The Revenue has grown by 14.18% in the last year.
The Revenue has been growing by 13.15% on average over the past years. This is quite good.
EPS 1Y (TTM)20.22%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%26.32%
Revenue 1Y (TTM)14.18%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.78%
3.2 Future
The Earnings Per Share is expected to grow by 14.19% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.08% on average over the next years. This is quite good.
EPS Next Y15.25%
EPS Next 2Y14.55%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year12.25%
Revenue Next 2Y11.89%
Revenue Next 3Y12.08%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.35, which means the current valuation is very expensive for EXLS.
EXLS's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. EXLS is around the same levels.
The Price/Forward Earnings ratio is 21.29, which indicates a rather expensive current valuation of EXLS.
64.63% of the companies in the same industry are more expensive than EXLS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.43. EXLS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 21.29 |
4.2 Price Multiples
EXLS's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EXLS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.71 | ||
| EV/EBITDA | 21.76 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EXLS may justify a higher PE ratio.
EXLS's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.73
PEG (5Y)N/A
EPS Next 2Y14.55%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
EXLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
46.38
+0.09 (+0.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners97.43%
Inst Owner Change2.32%
Ins Owners0.46%
Ins Owner Change29.63%
Market Cap7.55B
Analysts83.75
Price Target55.63 (19.94%)
Short Float %5.39%
Short Ratio6.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)5.34%
Min EPS beat(2)4.04%
Max EPS beat(2)6.65%
EPS beat(4)4
Avg EPS beat(4)4.31%
Min EPS beat(4)1.41%
Max EPS beat(4)6.65%
EPS beat(8)8
Avg EPS beat(8)4.34%
EPS beat(12)12
Avg EPS beat(12)5.17%
EPS beat(16)16
Avg EPS beat(16)6.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.79%
Max Revenue beat(2)0.18%
Revenue beat(4)2
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.15%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-0.42%
Revenue beat(12)7
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)1.24%
PT rev (1m)-1.73%
PT rev (3m)11.87%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)0.15%
EPS NY rev (3m)-1.02%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.7%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 21.29 | ||
| P/S | 3.97 | ||
| P/FCF | 30.71 | ||
| P/OCF | 25.7 | ||
| P/B | 7.46 | ||
| P/tB | 13.84 | ||
| EV/EBITDA | 21.76 |
EPS(TTM)1.76
EY3.79%
EPS(NY)2.18
Fwd EY4.7%
FCF(TTM)1.51
FCFY3.26%
OCF(TTM)1.8
OCFY3.89%
SpS11.7
BVpS6.22
TBVpS3.35
PEG (NY)1.73
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.89% | ||
| ROE | 21.36% | ||
| ROCE | 19.58% | ||
| ROIC | 15.02% | ||
| ROICexc | 19.54% | ||
| ROICexgc | 33.9% | ||
| OM | 14.74% | ||
| PM (TTM) | 11.36% | ||
| GM | 37.9% | ||
| FCFM | 12.91% |
ROA(3y)11.89%
ROA(5y)10.36%
ROE(3y)20.31%
ROE(5y)17.99%
ROIC(3y)15.15%
ROIC(5y)13.79%
ROICexc(3y)20.61%
ROICexc(5y)20.14%
ROICexgc(3y)45.95%
ROICexgc(5y)N/A
ROCE(3y)19.75%
ROCE(5y)17.97%
ROICexcg growth 3YN/A
ROICexcg growth 5Y4.53%
ROICexc growth 3Y-6.9%
ROICexc growth 5Y14.65%
OM growth 3Y0.91%
OM growth 5Y10.78%
PM growth 3Y1.78%
PM growth 5Y9.57%
GM growth 3Y-0.74%
GM growth 5Y2.1%
F-Score8
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 84.95% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 13.74 | ||
| Cash Conversion | 87.15% | ||
| Profit Quality | 113.7% | ||
| Current Ratio | 3.41 | ||
| Quick Ratio | 3.41 | ||
| Altman-Z | 10.05 |
F-Score8
WACC9.52%
ROIC/WACC1.58
Cap/Depr(3y)89.55%
Cap/Depr(5y)85.41%
Cap/Sales(3y)2.98%
Cap/Sales(5y)3.33%
Profit Quality(3y)94.25%
Profit Quality(5y)118.13%
High Growth Momentum
Growth
EPS 1Y (TTM)20.22%
EPS 3Y-29.95%
EPS 5Y-11.63%
EPS Q2Q%26.32%
EPS Next Y15.25%
EPS Next 2Y14.55%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue 1Y (TTM)14.18%
Revenue growth 3Y17.88%
Revenue growth 5Y13.15%
Sales Q2Q%14.78%
Revenue Next Year12.25%
Revenue Next 2Y11.89%
Revenue Next 3Y12.08%
Revenue Next 5YN/A
EBIT growth 1Y16.5%
EBIT growth 3Y18.96%
EBIT growth 5Y25.35%
EBIT Next Year32.09%
EBIT Next 3Y19.47%
EBIT Next 5YN/A
FCF growth 1Y46.43%
FCF growth 3Y14.72%
FCF growth 5Y11.62%
OCF growth 1Y40.5%
OCF growth 3Y13.35%
OCF growth 5Y9.78%